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mschuster91 · 8 years ago
> Helios and Matheson, an analytics company which has a majority stake in MoviePass

This here is the juice: Big data. The more customers they have, the better - they have validated full names, birthdates, addresses and CC numbers (and most likely also ethnicity) linked with the data when they visited what movie and even if the customers repeatedly visited a movie.

MoviePass has, effectively, four distinct customers:

a) the moviegoers themselves, where MoviePass makes a profit on everyone watching less than 1 movie a month

b) the vast amount of adtech/big data/consumer analytics companies for which this data is a goldmine

c) the movie studios which can (as shown in the article) use MoviePass to promote movies

d) the cinemas which profit off the customers wanting to eat and drink

They have, of course, monetized a) and begun to discover how to monetize c) - it will be interesting if they find a way to monetize the data.

utnick · 8 years ago
Is that data that valuable though? Its not that unique, off the top of my head there are several companies that have similar datasets, Every movie theatre chain, every online movie booking service, every movie review site
mschuster91 · 8 years ago
Yes, because:

- the theatre chains only have mostly generic datasets (the audience for movie X is mostly young white males) while MoviePass can do far more detailed analysis (and, in theory, could pass detailed questionnaires after you watched a movie, thus gathering more personalized data)

- online movie booking services (at least in my social bubble) are only used for movies where people think they don't have a chance to get a ticket without an early reservation

- movie review sites only have tiny bits of data about the readers, and the reviewer dataset is skewed - it only provides data about the people caring enough to do a review.

sudhirj · 8 years ago
Chains have data only for the times people visited their own chains (and might not have much info for counter sales), online booking services have a similar problem, movie review sites are much more limited in that not everyone writes a review for any movie they watch, leave alone all the movies they watch.
kogir · 8 years ago
Their data is useless. They have no way to tie purchases to the movie viewed. I just pick the first thing it’ll let me check in for, not the movie or time I want, and it always works.
calvano915 · 8 years ago
Do me a favor and turn off your GPS after purchase so the app doesn't track the viewing time of the movie you actually went to. Abuse of the service like what you're doing may force them to add restrictions. Not cool, IMO.
Scoundreller · 8 years ago
> I just pick the first thing it’ll let me check in for, not the movie or time I want, and it always works.

This... is a great idea...

dominotw · 8 years ago
> vast amount of adtech/big data/consumer analytics companies for which this data is a goldmine

Don't credit card companies already have this data?

warkdarrior · 8 years ago
Credit card companies and the banks behind them do not see which movie a customer went to, only that they went to see some movie.
vondur · 8 years ago
Doesn’t something like Fandango have that info too? I use their service and I’m assuming they are profitable.
schizoidboy · 8 years ago
I thought their business model was like a gym: hope that most people won't use it. (Source: I have MoviePass and I'm seeing less than 1 movie per month because I'm too busy :-D)

Instead, this article claims it's:

1. Studio of movie $M pays MoviePass $X to market it to subscribers.

2. Subscribers see a movie they otherwise wouldn't pay for. MoviePass eats this cost ($Y).

3. Subscribers' word-of-mouth network effects bring in extra revenue $E that otherwise wouldn't have come in.

4. MoviePass stays alive if $E > $X > $Y.

dublidu · 8 years ago
MoviePass can’t use the gym model because most people actually like going to the movies, it’s not aspirational. MoviePass also has much higher cost per visit, since they have to pay full price to AMC.

Deleted Comment

draw_down · 8 years ago
If people don’t use it then MoviePass won’t get any data for analytics.
praneshp · 8 years ago
Heads up from a former customer that just cancelled: I was a huge fan 3 months ago, but they've been dropping theaters left and right. Around mountain view, they have gone and dropped both theaters I watch movies in.

In my opinion, this will be a better program if there was a guarantee that theaters will stay for X months.

libertine · 8 years ago
I still remember when movie theaters provided a different experience - and I'm in my late 20's, so it was not that long ago.

Movie theaters became just another living room - people go there chat, comment and eat during the movie just like they were at home. It became such an obnoxious experience, where people are shoved into a room and door is closed.

This goes to say: movie theaters had a lot of distribution costs reduced over the years, and probably even the reform of projectors isn't such a big deal today due to digital distribution.

MoviePass is aiming to give them volume, at a reduced margin - that's how.

scarface74 · 8 years ago
It depends on the theatre. I only go to a regular movie theatre when I'm back home seeing my parents. I enjoy the theatre experience where you get reclining seats and you get to reserve your seat beforehand. The next step is the dinner and movie experience where you get to both enjoy reserved seating and get food served while you're eating. Those theatres by necessity aren't as crowded and you have a much better experience. The ticket costs for the movie and dinner type places are usually cheaper since they can make it up on food.

We also still have a decent drive in in our area where the sound comes through your fm radio. You can see two new releases there for like $8 a person. You can bring your own food - usually we do take out.

Movie pass is a no go for popular movies for us because you can't use it to reserve movies in advance online.

slfnflctd · 8 years ago
> The ticket costs for the movie and dinner type places are usually cheaper since they can make it up on food

For some of them, this may be true. However, one I visited in the Midwest put their 'eat & watch' section in an exclusive balcony above the standard seating area and was charging almost double per ticket (along with sub-Applebee's food at Chili's prices). They have apparently been in business for over five years doing this.

I enjoyed the experience, but I ultimately didn't feel it was worth the extra cost, and the sound of silverware on ceramic plates & bowls was a bit distracting. Handheld food and fancy paper/plastic plates and utensils would be how I'd run that operation.

chc · 8 years ago
That's weird — here, the more full-service a theater is, the more expensive it is. Some theaters have more extensive food selections and serve booze, and those are more expensive than normal theaters. Others actually have servers take your order and bring it to you in the theater, and those are more expensive still. I figured it was a sort of price discrimination — the people who want to eat expensive food while watching a movie are less likely to care if the ticket cost an extra $5 because that's a tiny fraction of the evening's total cost.
dawnerd · 8 years ago
moviepass works for new movies, you just have to show up first thing in the morning and reserve a night show. Never had problems getting a good seat myself at a regal with reclining/reserved seats.
eloisant · 8 years ago
I've seen that kind of behaviour in the US (and that was 10 years ago already).

I've never seen it in Europe however, I just thought that's the way Americans enjoy a movie in a theater (a way that really turns me off, actually).

nxc18 · 8 years ago
Where in the US have you been watching movies? I’ve never experienced this. The worst I’ve seen (and it bugs the heck out of me still) is people clapping when something big happens, but that is still quite rare.

I’ve seen films in upstate NY, SF, SD, LA area, and beautiful New Hampshire.

gambiting · 8 years ago
Same here - and I've been to theatres in multiple EU countries. People definitely don't talk, absolutely don't talk on their phones(they would be kicked out if they did), and eating - meh, just the standard popcorn stuff. I've been to one theatre which also served proper food but you actually sat at a table not in a theatre seat, it felt more like a restaurant with the film playing in the background.
cryptozeus · 8 years ago
Hummm I have not experienced this, atleast in big amc type theaters. What I like about movie theater is that its one of the last places that exist where nobody is on the phone and you are enjoying distraction free.
schizoidboy · 8 years ago
If the main business model works (see my other comment), then theaters' margins needn't be reduced.

I guess MoviePass thinks they deserve a cut of concessions since they're saving theaters - which might be true - but theaters control the end product, so I doubt they'd share revenue. They're more likely to compete against MoviePass if the plan works.

lsc · 8 years ago
>but theaters control the end product, so I doubt they'd share revenue. They're more likely to compete against MoviePass if the plan works.

This seems the most likely to me; I mean, if I were to buy a ticket subscription, I'd want that at the theaters that I go to often; I am happy to pay full price when I go somewhere unusual.

This means there's almost no network effect... my favorite theater could put up a subscription service that only worked at that one location, and it would instantly have more value than MoviePass that might or might not include access to that theater next month. Even better would be a regional service, but in this case, at least on the customer end, I don't think making the service national adds very much value at all.

libertine · 8 years ago
I've seen your post - it does make sense to be that way indeed.
tacomonstrous · 8 years ago
At least in my case, by continuing to charge me monthly even after I canceled the service. Their customer service is non-existent, so I had to file a dispute with my credit card company to make it stop.
xivzgrev · 8 years ago
I don't quite follow the angle of promoting smaller studios' movies. If I am such a studio, and pay moviepass $100k to push a movie, and then that results in $1M tickets sold thru MoviePass, and I get $500k (or whatever), didn't MoviePass just lose $900k? MoviePass is both the marketing channel AND consumer. The studio has to make a profit and that has to come from somewhere - MoviePass' profit.
toast0 · 8 years ago
Ah, but it their customers watched other movies, they would have lost $1M, so it's better. If the intent is to get movie attendance data at any cost (as it seems), getting it at less cost is better.
xivzgrev · 8 years ago
True. How do you know they would've gone to see a movie though?

That's what seems weird about this whole gravy train - the various drivers of the business clash with each other. More movies per person, more data, but more margin loss. Fewer movies per person, more margin, less data. More studio deals, more revenue, less margin.

I think they're exploring various business models and finding where the sustainable value is. Will be interesting to see!

Udik · 8 years ago
This is a way to reduce the costs, but it can't be a way to make any profit (or just break even). You'll always burn a lot of money.

I can't believe there isn't a way to get movie attendance data for less than, say, 5$ per data point.

haily · 8 years ago
I think most people are missing the point here. MoviePass has many ways to monetize from begin to end. It currently has more then 1.5 million subscribers & growing very fast (fastest subscription service growth ever, even faster then netflix). Most people miss the opportunities MoviePass has. It will control the demand & distribution of movies through its subscribers. Movie theater goers have been declining year over year and MoviePass will help reverse this.

It currently makes money by

a) subscriptions $9.95/month b) $2-3 rebate per ticket contracts with about 1000 theaters (5 new contracts a week are signed) c) 20-30% of concession revenue with about 1000 theaters (5 new contracts a week are signed) d) Bought "America Animal" movie rights for North American release at Sundance Festival

neuralFatigue · 8 years ago
They also now take cuts from ticket prices and upto a 20% cut from concessions.

More information here: https://techcrunch.com/2018/01/26/moviepass-pulls-out-of-amc...

The article makes it sound like Moviepass now has more leverage than the theatres themselves, which is super interesting.

jrs95 · 8 years ago
Based on another article I saw, this doesn’t seem to be the case with AMC.[1]

Basically, all of MoviePass’ subscribers is still a tiny portion of AMC’s sales, so they’re refusing to share any of their revenue with MoviePass.

[1] https://www.theverge.com/2018/1/26/16936952/moviepass-amc-th...